“Considering both lower short-term rates and projected parent liquidity balances before proceeds from any strategic transactions, short-term investment income could decline in the fourth quarter by about $25 million sequentially.”

In context

“higher reinvestment yields. About 11% of our fixed maturities have monthly or quarterly floating rate resets to SOFR or other short-term market indices, which began to decline in the third quarter. Alternative income is principally from traditional private equity and now includes real estate investment funds that were previously consolidated. These assets are reported on a one quarter lagged basis and based on third quarter market performance, we expect fourth quarter private equity results may be similar to the year-to-date annualized return of 3.5%. Turning to other operations. Adjusted pre-tax loss in the quarter was $143 million, a nearly 50% year-over-year improvement driven by lower GOE and interest expense and higher net investment income, which totaled $125 million in the quarter. Considering both lower short-term rates and projected parent liquidity balances before proceeds from any strategic transactions, short-term investment income could decline in the fourth quarter by about $25 million sequentially. To wrap up the quarter, the balance sheet remains very strong. Book value per share was $71.46 at quarter end, up 4% from June 30, 2024, due to the favorable impact of lower interest rates on AOCI. Book value per share increased 10% from year end 2023. Adjusted book value per share was $73.90, up 2% from June 30 due to reduced shares outstanding and was down 6% from year end 2023 due to different accounting treatment of Corebridge between the two periods. As Peter noted, our debt leverage ratios are very strong. We recently called a $400 million par zero coupon bond, which will close November 22. Core operating ROE, which measures the annualized return on AIG shareholders' equity, excluding the value of Corebridge shares and deferred tax assets, was 9.2% in the quarter and 9.3% year-to-da”